Taiwan backs down from chip export ban on South Africa
This comes just two days after it announced the suspension. It seems using semiconductors as weapons is trickier than it looks.
Sometimes, countries squabble the way friends do, quick to raise their voices, quick to take a stand, but just as quick to realise when things may have gone too far. It’s part of diplomacy’s messy dance: harsh words one day, backpedalling the next once the dust settles.
That’s more or less the case right now between Taiwan and South Africa, after a short-lived attempt to use semiconductors as a bargaining chip in a political spat.
Louis Eriakha
Earlier this week, Taiwan surprised everyone by announcing restrictions on chip exports to South Africa. The move was unprecedented, marking the first time Taipei had unilaterally imposed such controls on another country. But within just two days, Taiwan hit pause. On Thursday, the Ministry of Economic Affairs said it was suspending the plan after talks with the Foreign Ministry.
In short, the threat is off the table for now.
But the way things got here in the first place is a bit interesting. The story begins with South Africa’s complicated relationship with Taiwan. In 1998, South Africa officially switched diplomatic recognition from Taiwan to China, cutting off formal ties with Taiwan.
Since then, Taiwan has maintained a presence through its Liaison Office in Pretoria, South Africa's capital city. But last year, Taiwan claimed South Africa began pushing for that office to move to Johannesburg, a shift Taiwan viewed as bowing further to Beijing’s pressure. The tension grew after South Africa hosted a BRICS summit in 2023, attended by Chinese President Xi Jinping, and calls to relocate the office grew louder as Pretoria prepared to host the G20 this November.
In response, Taiwan decided to flex its economic muscle by targeting its most valuable export: semiconductors. On Tuesday, it announced a 60-day notice for new export controls that would limit chip shipments to South Africa.
Symbolically, this was a big deal. Chips are Taiwan’s crown jewel, powering everything from AI to cars. Practically, though, the numbers told a smaller story: South Africa imports about $30 million worth of chips from Taiwan each year. But according to Taiwan’s figures from last year, only about $4 million of that would have fallen under the proposed restrictions. Still, it showed Taiwan was willing to wield its dominance in the global chip supply chain as a diplomatic weapon.
But the backlash was swift. China accused Taiwan of destabilising supply chains, while South African officials warned the move could hurt industries like automotive manufacturing. Even Taiwan seemed uneasy, realising the risk of hurting local firms like TSMC outweighed any symbolic win.
By suspending the controls, Taiwan preserved some leverage while keeping relations from spiralling. Going forward, semiconductors may well become part of its diplomatic playbook, but this episode shows just how tricky that strategy can be.
Emmanuel Oyedeji
